Brexit fails to help first-time buyers: Rightmove

This sector of two bedrooms or fewer has seen an average increase in the price of newly-marketed property of 3.3 per cent (£6,240) this month and 10.5 per cent (£18,450) over the past year.

Miles Shipside, Rightmove director and housing market analyst, said: “Some of those trying to get onto the property ladder may have wistfully listened to speculation of lower prices in a post-Brexit Britain.

“While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath.

While the referendum result has created additional downwards price pressure in some upper segments of the market that were already slowing, those who do not own a home and arguably have the greatest housing need are now finding it harder to achieve their goal in the post-Brexit-vote aftermath.Miles Shipside

“In their favoured target sector with two-bedrooms or fewer average asking prices have jumped by over £6,000 in the last month as we enter the typically active Autumn market.”

The first-time buyer property sector had already seen significant upwards price pressure this year due to a surge in buy-to-let sales before April’s additional stamp duty on second homes, and a subsequent shortage of available stock for first-timers in May.

This latest increase of 3.3 per cent pushes the annual rate of increase to 10.5 per cent.

In contrast the next rung up the ladder, second-stepper properties with three or four bedrooms (excluding four-bedroom detached), has increased by just 0.5 per cent this month and a much more modest 5.2 per cent year-on-year.

The upper end ‘top of the ladder’ sector with four bedrooms or more is up by 1.2 per cent this month and just 2.7 per cent in the last 12 months.

Mr Shipside said: “The rising tide of prices is marooning more and more first-time buyers, out-stripping their ability to meet stricter lending criteria and afford the required deposits and monthly repayments.

“Increasing numbers are being cut off from home-ownership altogether and while schemes are in place to help, the additional demand they create is not matched by available and affordable supply.

“With an average rise of over 10 per cent in prices of typical first-time buyer properties over the last 12 months, minimum entry prices in some locations will go above what lenders are able to lend to most aspiring first-time buyers.”

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “House prices are continuing their unstoppable climb to overwhelming, and for many aspirational first-time buyers, unreachable heights.

“The government can hopefully use the Autumn Statement to deliver a clear plan of action which prioritises the need to boost the supply of affordable homes.”